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HomeMy WebLinkAboutPR 17280: TRANSIT BUS TIRE PURCHASE INTEROFFICE MEMORANDUM To: The City Council and City Manager Floyd Johnson, City Manager From: Colleen Russell, Director of Transit Tom Kestranek, Transit Manager Subject: P.R. NO. 17280 Transit BusTire Purchase Date: 10/24/2012 Recommendation: It is recommended that the City Council approve Proposed Resolution No.17280 for Goodyear Metro Miler 305/70R22.5 Tires to be purchased by the Transit Department. This Resolution would authorize the purchase of tires for the amount of $610.00 each plus the appropriate State tire excise tax. The expense will be charged to the Equipment Maintenance Account Number: 401- 1502 - 561.43 -00. The procurement of tires under this award shall not exceed $25,000.00. Background: Upon approval, the authorized tire award to Goodyear Tire & Rubber Company of Allen, Texas the Transit Department will be able to ensure continued service. Tire vendors of this nature require contracts or larger purchases; since PAT leased NORTA buses in July 2012, Transit was unaware of the difficulty in obtaining tires for their buses. The tire award for Goodyear Metro Miler 305/70R22.5 tires will be fully utilized for the leased 2008 Orion VII Buses from the New Orleans Transit Authority (NORTA) and will allow for Transit's budget to extend to year end rather than be expended within a few months. Hence, The Transit Department along with the City's Purchasing Division solicited written quotes and then received three (3) quotes for the purchase of Goodyear Metro Miler 305/70R22.5 tires. The three (3) written quotes received were from the following vendors: VENDORS Metro Miler 305/70R22.5 Tires Quotes (1) Goodyear Tire & Rubber Company $610.00 +Tax Allen, TX. (2) Southern Tire Mart $1,092.12 +Tax Beaumont, TX. (3) Michelin North America, Inc. . .$673.00 +Tax • Greenville, Sc. 1 Budgetary/Fiscal Effect: Funding for the purchase of the Goodyear Metro Miler's is available from the Transit Equipment Maintenance Account Number: 401- 1502 - 561.43 -00. Staffing/Employee Effect: No anticipated effect on staffing is expected with this action. Summary: The Transit Department recommends that the City Council approve Proposed Resolution No. 17280 for the purchase of Goodyear Metro Miler 305/70R22.5 tires for NORTA Bus Fleet. This Resolution would authorize the purchase of tires from The Goodyear Tire & Rubber Company of Allen, Texas for the amount of $610.00 each plus the appropriate State excise tax. The procurement of tires under this award shall not exceed $25,000.00. The expense will be charged to the Equipment Maintenance Account Number: 401- 1502 - 561.43 -00. Tom Kestranek Colleen Russell Transit Manager Director of Transit P.R. No. 17280 10/25/12 cb Page l of 2 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH GOODYEAR TIRE & RUBBER COMPANY OF ALLEN, TEXAS, FOR THE PURCHASE OF GOODYEAR METRO MILER 305/70R22.5 TIRES FOR THE TRANSIT DEPARTMENT, IN AN AMOUNT NOT TO EXCEED $25,000. FUNDING AVAILABLE IN THE TRANSIT INVENTORY /STORES ACCOUNT NUMBER: 401 - 1502 - 561.43 -00. WHEREAS, the Transit Department along with the City's Purchasing Department solicited quotes for tires to be utilized on the 2008 Orion VII Buses leased from the New Orleans Transit Authority (NORTA); and WHEREAS, three (3) quotes were received and have been evaluated by the Purchasing and Transit Departments for the purchase of tires, with Goodyear Tire & Rubber Company of Allen, Texas, submitting the lowest quote, a copy of the quote tabulation is attached hereto as Exhibit "A ". NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the City Manager is hereby authorized to execute a contract between the City of Port Arthur and Goodyear Tire & Rubber Company of Allen, Texas for supplying Goodyear Metro Miler 305/70R22.5 tires ($610.00 per tire) in an amount not to exceed $25,000, in substantially the same form as attached hereto as Exhibit `B ". THAT a copy of the caption of this Resolution be spread upon the Minutes of the City Council READ, ADOPTED AND APPROVED this day of October A.D. 2012 at a Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: P.R. No. 17280 10/25/12 cb Page 2 of 2 MAYOR: COUNCILMEMBERS: • NOES: Mayor ATTEST: City Secretary APP ' I VE P AST O FORM: City Attorney / APPROVED FOR ADMINISTRATION: Cit . ag dia 411Matt Director of Tran it APPROVED AS TO AVAILABILTY OF FUNDS: J,/ , / /._ Director of Finance 'urchasing Manager EXHIBIT "A" CITY OF PORT ARTHUR TEXAS TRANSIT DEPARTMENT TABUALTION SHEET DESCRIPTION: 305/70R22.5 TIRES FOR TRANSIT BUSES DATE: OCTOBER 25, 2012 NAME OF BIDDER QUANTITY UNIT COST GOODYEAR TIRE & RUBBER COMPANY 1 $ 610.00 SOUTHERN TIRE MART 1 $ 1,092.12 MICHELIN NORTH AMERICA, INC 1 $ 673.00 EXHIBIT "B" CONTRACT FOR THE PURCHASING OF GOODYEAR METRO MILER 305/70R22.5 TIRES FOR THE CITY OF PORT ARTHUR'S TRANSIT DEPARTMENT THIS AGREEMENT, made this day 30th of October , 2012, by and between the City of Port Arthur, a municipal corporation organized under the laws of the State of Texas, hereinafter called "OWNER" or "CITY" and Goodyear Tire & Rubber Company a (n) Corporation herein acting by and through hereinafter called "CONTRACTOR" WITNESSETH: That for and in consideration of the payment terms, conditions and agreements set forth herein , OWNER and CONTRACTOR agree as follows: 1. The term of this Contract shall be from October 30, 2012 to October 29, 2013. The City can terminate this contract at its convenience which includes, but is not limited to, funding not being available in any budget cycle with ten (10) days written notice. 2. The Contractor will supply Goodyear Metro Miler 305/70R22.5 to City of Port Arthur Transit Department. 3. During the term of this Contract, the Contractor will furnish at his own expense all of the materials, supplies, tools, equipment, labor and other services necessary to connection therewith, excepting those supplies specifically not required of Contractor in the Specifications. 4 The CONTRACTOR agrees to perform all the work described in the specifications and contract documents and to comply with the terms therein for the amount of $ 610 per tire. 5. The term "Contract Documents" means and includes the following: 1) Agreement 2) Quote 3) Notice of Award 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors and assigns. Page 1 of 2 7. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in ( 2 copies) each of which shall be deemed an original on the date first above written. Signed on the day of , 2012. ATTEST: CITY OF PORT ARTHUR BY CITY SECRETARY Floyd T. Johnson, City Manager Signed on the day of , 2012. WITNESSED: GOODYEAR TIRE & RUBBER COMPANY BY CITY SECRETARY Print Name: Title: Page 2 of 2 Clifton Williams From: Craig Brown [transitshop @portarthur.net] Sent: Thursday, October 25, 2012 1:40 PM To: Clifton Williams Subject: FW: Goodyear B305/70R22.5 Pricing & Credit Information Attachments: 1 Credit Application Form Mileage Sales.xls; 2 Blanket Sales Tax Exempt Cert.xls; 3 Statement of Ownership Form.doc; 4 2011 W -9 Form.pdf; 5 Credit Mail Ship TO.xls Here is the bid and credit app for Alex. (Goodyear) From: alex.perepiczka@goodyear.com [ mailto :alex.perepiczka(agoodyear.com] Sent: Thursday, October 25, 2012 1:37 PM To: transitshopOportarthur.net Subject: Goodyear B305/70R22.5 Pricing & Credit Information Craig, Here is the information that you requested: B305/70R22.5 LR -H G152 55 MPH $610.00 ea (plus any applicable taxes). No Shipping charges. Credit Application attached: As we discussed, without a completed credit application and credit approval, prior to shipping tires, payment would have to be sent into Goodyear. Payment information: For overnight payment, FEDEX only to: Northern Trust The Goodyear Tire & Rubber Co ATTN: LBX 92743 8th Floor 350 North Orleans Street Chicago, IL 60654 For electronic wire transfer/ ACH Payments: Northern Trust Chicago, IL Should you need any additional information, please, do not hesitate to call. Thanxs, 1 Alex Perepiczka - Region Manager #4101 The Goodyear Tire & Rubber Company 906 W. McDermott Drive Suite 116, PMB #291 Allen, TX 75013 Phone: 972 - 727 -9646 Fax: 972 - 727 -9267 Mobile: 469- 576 -2953 e -mail: alex.perepiczka web: http : / /www.goodyear.com /mileagel Contains Confidential and or Proprietary Information May Not Be Disseminated Without Written Consent of The Goodyear Tire and Rubber Company A Please consider the environment before printing this email. 2